The accounting cycle:
1.Collect and verify source documents,
2.Analyze each transaction,
3.Journalize each transaction,
4.Post to the ledger,
5.Prepare a trial balance,
6.Prepare a worksheet,
7.Prepare financial statements,
8.Journalize and post closing entries,
9.Prepare a post-closing trial balance.
The accounting cycle is important because if it is used properly, the cycle will make it much easier to put together its financial statements in a more timely and precise fashion.
1.Collect and verify source documents,
2.Analyze each transaction,
3.Journalize each transaction,
4.Post to the ledger,
5.Prepare a trial balance,
6.Prepare a worksheet,
7.Prepare financial statements,
8.Journalize and post closing entries,
9.Prepare a post-closing trial balance.
The accounting cycle is important because if it is used properly, the cycle will make it much easier to put together its financial statements in a more timely and precise fashion.